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How to earn upto 9% interest on your Savings account Balance?



Yes. You read it right. In this post, I will explain how to earn upto 9% interest on your idle savings account balance.

Option 1  –   Choose High Interest Saving Account

Typically banks give 4% interest on savings accounts. However, after RBI de-regulated the savings account interest rates, few banks are offering higher rates.

Bank / Rates Balance upto 1 lakh Balance above 1 Lakh
Yes bank 6% 7%
Kotak Bank 5.50% 6%
IndusInd Bank 5.50% 6%

So, you can get maximum of 7% interest from your savings account.


Option 2  –   Choose Sweep in / Out Facility on your Savig Account

But, let’s see how you can increase your returns upto 9% using “Sweep In/Out” facility.

A.  What is this “Sweep in / out” facility?

This is like a combination of Savings account & Fixed Deposit account.

It combines benefits of both accounts –

  • High Returns of Fixed Deposit &
  • Quick encashment (Liquidity) of Savings Account.


B. How it works?

Most of the times, you have idle money sitting in savings account than you actually use it. But, you don’t invest it, because you think that you might need it, for e.g. in emergency.

So, in such cases, “Sweep in/out” facility comes handy.

Sweep facility allows you to transfer funds (automatic / manually) from your saving account to a “Virtual” Fixed deposit account and earn high interest rate.

And it automatically transfer money back from FD to savings account as and when required (cash withdrawal/ cheque etc).

1) An FD is made for the whole amount which earns higher interest rate.

2) When you withdraw money, an equivalent amount is reduced from your FD & auto transferred to saving account. You earn FD interest on that amount till the date of withdrawal. For the balance amount, you continue earning FD rate of interest.

C. Let’s understand through an example

Suppose you have savings account balance as on 01-Apr & then withdraw money periodically as per schedule below:



In case of just normal saving account, you will earn interest of Rs 3400.  However, if you avail sweep facility, your returns will increase to approx Rs 7487.


D. What will happen when I withdraw money / issue cheque / online purchase?

Suppose you want to withdraw / issue cheque of Rs 25000. Don’t worry; your cheque WILL NOT bounce.

The money will be swept-in from your FD account to your saving account automatically.

E. Points to note

  • Some banks define the minimum saving bank limit above which the FD is made automatically while others allow you to choose minimum saving balance.
  • Some banks allow the FD for defined tenure only while others allow you to choose FD tenure.
  • Some banks sweep-in the FD into multiple of 5000 or 10000, while others do it in multiple of Rs 1.
  • Some banks break the FD in First-in-First-Out basis while others do it on Last-in-First-out basis.

F. How to enable this Sweep in/out facility

Different banks have different names for such accounts like Supersaver facility, HDFC SavingMax Account, Kotak ActivMoney, ICICI Money maximiser etc

You have two options:

1) Auto Sweep-out facility & Sweep inIn this facility, Bank will automatically sweep-out/ transfer money from your saving account to Fixed deposit, once your saving balance is above threshold limit say Rs 50,000.

Visit your branch and ask your relationship manager to enable the “Auto Sweep / Sweep-in” facility on your account. Sometimes, they will enable this facility on your existing account or they can open a new savings account with this facility.  To open a new saving account, you just need to sign the form as bank already have your documents.

Advantanges: FD is created automatically once the balance of saving account is above threshold limit.

Demerits1) You loose FD interest on amount defined as threshold limit (just savings interest on that amount)

2) Tenure of FD is standard set by bank. Normally 1 year. But sometimes you get higher interest if you make an FD for odd periods like 1 year 16 days etc.

2. Just Sweep-in facility: In this facility, you just have to create a normal FD online and then select this FD to enable sweep-in option. This is default feature in many banks.

Merits: You get FD interest on whole amount.  Also, you can choose your tenure of FD based on higher interest rates.

Demerits: You have to create FD yourself through netbanking. It is not automatically done. So you need to remember to make FD when you get money in your saving account.


Read my other post –  SBI Savings Plus Account with MOD High Interest Scheme – Details & Review

See my other post on – How to use Sweep-in facility in HDFC Bank via Net-banking (with screenshots)

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please ask in our forum

About Vivek Jain

Vivek is a Chartered Accountant with 13+ years of Global Experience. He loves to write about Personal Finance, Wealth Management, Taxation etc.


  1. Is YES bank is having sweep in / out facility?

  2. Hi my mom is a house wife.After the expiry of my father she received PFs,gratuity from bank where he was working .That amount was deposited in Savings bank A/C for which she has received interest of approx 80k. This is her only income, for this should we file return.

  3. Fantastic post, thanks for sharing!!

  4. Very well explained and extremely helpful..Great Work!!

  5. Is it possible that you are able to calculate interest earned in sweep in sweel out facility.
    Is there some software/ formula

    • Hi, It will depend on the number of days the amount was in sweep in/ out. If is is more than 3 months then it will compund, otherwise simple. also the Interest rate will eb different for durations.

  6. HI!! does sbi have sweep facility? if yes, how to avail that ? and is there any condition that we should have some minimum balance to get sweep facility?

  7. Hi, can you please explain what is the difference between LIFO & FIFO breaking of FD?

    • LIFO breaking of FD means that the Last FD will be break first in case of shortfall.
      1) You have FD for 10000 for 1 year @ 9% starting on 01-Jan-2014
      2) You have another FD for 10000 for 1 year @ 9% starting on 01-Jul-2014

      If you have shortfall in your account, first the money will come out of 2nd FD made on 01-Jul (in LIFO Method).

      This will ensure that old FD is not broken.

  8. I have 6lakh in sbi savings account. How can I use this money to get more interest? Please help me…

  9. Shuvankar Sannyamot

    thanks,can you please tell me what is the name of this account in UCO and SBI?

  10. Dear. I want to know that. In how many days icici bank transfer interst on saving account..

  11. Hi Vivek,

    You’re really good in answering. It’s me again for SBI related query now :)

    Last day after reading your post i enable e-MOD facility in my SBI account using netbanking. But neither it asked for threshold limit here and neither it took all the money lying in saving account to this e-MOD. It simply created another deposit account just like an e-FD. Where am i doing wrong?

    Again , how e-MOD differs from SavingPlus account of SBI.

    • Hi Saurabh,

      When you create an e-MOD under SBI Netbanking, you need to choose 3rd option. see below

      In that case, you need to enter the amount & tenure for which you need to make the e-MOD deposit. You can issue cheque from your saving account and if money is short in Saving, the money from this e-Mod will come automatically.
      2) SavingsPlus Account is where the money is moved automatically to e-MOD account above defined threshold. See details in post bleo:

  12. Hi vivek,

    Yes , i have followed same steps as mentioned above.

    So, it mean e-mod is just like a sweep in of hdfc.

    Auto Sweep out above threshold is not a feature of e-mod? am i correct only sweep in is available.


  13. Hi Vivek,

    That’s answer my query for SBI.


  14. Dear
    Currently I m working with a pharmaceutical company. company providing Gross salary approx 25k but deducting pf on 6500 only.
    After this new notification by epfo any change will take place, that we wants to go on more than 15 k.
    Plz replay.

    • Hi Vikash, With the new notification, your company will have to deduct PF on 15000. they might not increase your salary but re-structure your gross salary.
      In such case, it may reduce your take home salary. That will not be good for employees.

      • Hi Vivek,

        I work in a delhi based pvt. ltd. co., my monthly gross is approx 35k, but basic is 6.5k (it’s fixed & doesn’t increase with increment). does this new notification would help me for investing in pf.Is there any law to increase basic as well?

        Awaiting your reply.


  15. Hiiiii sir , what is the meaning of
    avail bal:5000,
    Ledger bal:5000
    Idbi bank account
    What is it mean sir can you explain
    When i went to i select balance enquiry the above statement what is avail bal ledger bal and ffd

    • Hi Surya. it shows the balance in your account.
      available balance – amount available for withdrawal
      ledger balance – amount in banks ledger
      normally above are same

      ffd – may be fixed deposit balance

  16. Hi,
    Thank you for this post. My question is regarding minimum balance, which is 10,000 in this account. If I have 1 lakh in e-mod FD, 10,000 in saving account and I issue a check for 25,000. Now my saving account will debit 10,000 and 15,000 will be debited from FD.
    After this will the bank shift 10,000 to my saving account from the FD (to maintain minimum balance) automatically or will I have to do this on my own? Because if this does not happen my saving account balance will be zero, and I will have to pay charges.

  17. sir,
    i want to know how calculate interest in saving a/c after the sweep in/out facility.

    • Hi Deepak, The Interest in Saving account will be calculated to the daily balance available in Saving account. (after sweep out)

  18. Dear Sir,

    Please guide me in the below situation.

    Recently i sold my house for 75lakhs. I have all the liquid money. I would like to enjoy my life with my family(6 members).
    i would like to live on with the interest i get on 75 lakhs. I dont want to lose single rupee as tax or something. All six members have bank accounts, and my idea was to distribute 75L in 6 accounts and avail interest which will be ample to lead a life with the interest amount. Please guide me how to distribute and how to choose the account and how to get maximum amount as interest.
    Please suggest which bank and which type of account could fetch me all benefits that could satisfy my requirements. Also, i could access my principal amount of 75 lakhs anytime in case of emergency.
    I decided to live like this as i want to explore all the happiness with family and also acheive all the hobbies i would love to with no tension and second thought regarding earning.
    Please advise me regarding this idea and suggest me a good way to fulfill my dream.

    Thanks in advance.

    • Hi Vishnu, As the minimum tax exemption slab is Rs 2.5 lakh, we can safely assume that FD of Rs 25 lakh will give an interest of less than Rs 2,5 lakh limit.

      So if you distribute money to 3 different members, then each of them can make FD of Rs 25 lakh and eaen interest.

      Note that if the amount given to wife / minor children without any consideration, then any interest earned will be clubbed to your income.

      • Dear Vivek,

        few more queries:
        * will i get the interest everymonth to use like a salary
        *Which type of FD should be done?
        * would it be possible to access the principal amount in case of emergency?
        * Will FD avail any charges/ penalties if withdrawn?
        Can you please elaborate how it works like an example. Consider this as my special Request and pls explain me.

        Thank you in advance.

        • Could you please let me know
          1) in which bank you have account or planning to have FD
          2) What will be your monthly income requirement
          3) for how long you can keep this money in FD?

          • Hi Vivek,

            Here are the answers

            1. Rite now i have accounts in SBI, Andhra Bank,canara bank,APGB and IDBI bank.
            2. My monthly requirement would be 50k to 60k. As half amount for rent, car and household expenses and the other half for chits.
            3. 2 to 5 years.

          • Hi Vishnu, If you make FD for Rs 75lakhs for Interest @9% , you will get approx Rs 56000 per month for your requirements.

            I think the best option is to split the amount into multiple FD as in case of emergency you can break required amount. For e.g. if rather than making 1 FD of Rs 25 lakh, you can make 10 FD of Rs 2.5 lakh each.

            Make sure every member has PAN updated in their bank account. because if no PAN is updated, bank will deduct TDS @20%.
            If PAN is updated Bank will deduct TDS @10% which you can claim by filing Income Tax returns.

      • hi i have 20 lakhs in 4 different saving banks past 1year. if any problem will come from income tax department pls clear my doubt

        • They can ask you why the return is not filed if you have large FDs. Also, they can ask for source of Income in case of scrutiny.

  19. Dear Mr. Vivek Jain,

    I am an NRI and i have most of the time surplus cash laying in my savings account in india. Please suggest me how can i maximise the returns on my savings.


  20. Hello,

    If I open an FD for 10 lakh with HDFC for a Year and 1 Day and want to withdraw the FD in between say after 3 months or 6 months. How do I ensure there are no or minimum charges levied for breaking FD.
    On your earlier note regarding FD opened in the name of wife, who will club the interest with my income. Is it the Bank or the IT department?


    • 1) If you break the FD after 3 or 6 months, then you will be paid the interest rate applicable for 3 or 6 month period – penalty interest.

      2) The income will be clubbed as per Income tax rules. It is your responsibility to show correct income. If not, the same can be assessed by Income tax officer at time of scruitny.

  21. Wow! This is pretty awesome and easy to understand. I’m more of a saver than a spender and much of the money I make is sitting idle in my accounts. So I will definitely put the sum to better use now. Just one question, which bank do you recommend for the Sweep In facility? I mean which is the most hassle free service provider?

  22. Hi

    I given the application to my SBI faridabad Branch to convert my Saving account to Saving Plus account.
    Can you Please let me know how i can check whether my account is converted to saving Plus or not ?


  23. Hello Vivek,

    I have a MOD (multi option deposit) account in SBI with internet banking facility. How can I see the details of matured/closed fd accounts i.e. deposit and maturity date and amount. I could get the details of running fds but not of matured accounts.


  24. Hi Vivek,

    Is this facility available in UCO bank and by which name?

    • Hi Amit,

      UCO bank has UCO Star Savings Deposit Scheme. This account has Auto Sweep Facility whereby above minimum balance Rs. 25000/-, in tranches of Rs. 5000/- Sweep in & Sweep out (maximum period 179 days) is made.

  25. Respected sir, I have opened a PPF account on my SBI savings account. I deposit Rs 1000 yearly in it as said to me by one of my friends. What is d use of this ppf account, I cannot withdraw my amount from it till 15 years pass.????? Is there any advantage of ppf account??

    Yours sincerely

  26. Hi Vivek

    Nice post :) I have 2 queries regarding this.

    1. Any idea, how does SBI break MODs, FIFO or LIFO?
    2. Your experience on MOD vs FD. and is it a good idea to keep money in MOD even if you are not planning to take money out?

    Please let me know.


    • Hi Prashant,
      All MOD beak FD on a LIFO basis so that it is beneficial for customer.
      2) It is better to keep in MOD, as you get same interest as FD and flexibility to withdraw before maturity without any problems.

  27. Hi I have an account in ICICI, SCB and citybank. Can you please tell me if these banks offer similar service.
    Thanks Karan

  28. sir can normal saving account can be converted to autosweep facility or do I require to open a new account for it. as I wanted to have long travk record.

    • it depends on each bank. some back , you can activate the facility in your existing account. In some cases, they ask to open a new account

  29. I m a 18 year old tenaager n i have collec5ed 20k uptil now so I wanna know how much rate of interest I could get on this per month

  30. Hi Vivek,
    what about CBI (Central Bank of India) ?
    Is the Sweep in/out facility available in CBI ?
    What is the current interest rate going on for that ?
    And how to activate that ? Can we activate it online ?

    • Hi Prakash,

      1) Central bank of India has a scheme called “CENT Uttam Scheme” whereby you can create FD for particular period but you can withdraw as and when required in units.

      2) They also have “CENT PREMIUM” SAVING DEPOSIT ACCOUNT but the quarterly average balance required is Rs 50000 / Rs 1 Lakh.

      3) If you have netbanking, you can also check if you can create an online FD and if there is an option to select “Sweepout option. I am not sure about this.

      • Hi Vivek,
        Thanks for quick reply.
        I’ve One more question….
        If CENT Uttam Scheme is that scheme, then what is MMDC (Money Multplier Deposit Certificate) in CBI?

        • CENT Uttam Scheme – you get liquidity and high returns. It is a flexible scheme that allows you to withdraw a part of the deposit amount as and when required.

          Money Multiplier Deposit Certificate (MMDC) – is normal FD and you need to withdraw it fully (you cannot do partial withdrawal)

  31. I’ve two cases to ask:
    1st case:
    If I’ve savings account in SBI and I activate MOD.
    If I put Rs.10k in FD for 3 months I’ll get Rs.750 interest @rate of 7.5%.
    Then again if I put the same amount in FD for 3 months, I’ll again get Rs.750 after 3 months.
    In this way I can earn Rs.3000 in a year on Rs.10000 whereas if I put Rs.10k for 12 months in FD I’ll get only Rs.900 for a year.
    So is it valid to put the same amount again and again in FD for 3months ?

    2nd case:
    If money in my savings account gets automatically sweeped out in FD and I need to use the money before 3 months, then will I get any interest on that? or only the penalty I’ve to pay without any earning?
    In automatic sweep out facility, how many days it require to sweep out and in ?

    • 1st case – you must be joking :)
      the interest rate of 7.5% is per annum. So if you put 10K for 3 months @7.5% p.a. you will get interest of Rs 187.5 (not rs 750)

      2nd case – if the money is swept in FD, and when you withdraw, you will get the FD interest for that period (minus) any penalty.

      What do you mean by – “In automatic sweep out facility, how many days it require to sweep out and in” ?

  32. Hello sir,
    I have opened saving plus account(salary) in SBI in August 14. Around 200k was deposited upto october 14 automatically. After that auto sweeping was stopped.So is this any limitation of account?? Another question is mobile no. related to mobile banking and internet banking must be same??

    • Hi Rupesh, there is no limit. How much amount is there in your saving account ? Above what threshold the money is sweeping in FD.
      2) Also, mobile number should be the same in your account

      • Sir,
        threshold amount is 10K . But, presently i have 100K+ in saving account. And i remember once saving balance became Rs. 9980 (was less than 10K) for very short period because i recharged mobile with that account as i am not aware that balance will go below 10K. After that transaction, sweeping has stopped.

        • Hi Rupesh, once yoru balance is more than 10000, then it should start sweep-in. You should check with your bank, if it doesnot start in next few days.

  33. respected sir,
    what is the minimum amount required for sweep in facility in hdfc bank??? how interest is calculated in this account???

    • 1) If you choose auto sweep in, I think the threshold is RS 1 lakh
      2) However, you can create FD and activate Sweep out option on that FD. There is no threshold required.

      The interest will be paid based on FD rate for that duration.

  34. thank you so much. i regularly read your posts. its really useful

  35. but if sweep FD is not broken for say 1 year, will they give higher interest of 1 year or some smaller durations interest which would be lower

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